Insights 
VT 
Eurozone M3 Money Supply
In September, the Eurozone’s M3 money supply increased by 2.8% year-over-year, exceeding the expected 2.7%. This rise indicates a slight increase in the overall money available in the economy.
The Euro’s performance fluctuated, with the EUR/USD finding support above 1.1600 due to a weaker US Dollar and optimism from US-China trade talks. Despite the positive momentum, challenges remain due to ongoing political issues in France.
The GBP/USD advanced towards 1.3350 amid fresh optimism in trade agreements. However, concerns regarding UK budget deficits might hinder further progress for the Pound Sterling.
Gold saw a decline as optimism over US-China trade discussions outweighed expectations for a Fed rate cut. This change spurred demand for riskier assets, impacting gold’s appeal.
US President Trump and China’s Xi are expected to meet, with the possibility that market reactions could be influenced by anticipated Federal Reserve actions. Investors show increasing scepticism towards the US Dollar, favouring alternatives like Gold and Bitcoin.
Solana’s Growing Confidence
Solana (SOL) is trending upwards, trading above $204, bolstered by rising on-chain activity and institutional interest. There’s increased confidence in Solana’s long-term prospects, as evidenced by recent market activity.
The slight uptick in the Eurozone M3 money supply to 2.8% for September is a minor data point, but it gives the European Central Bank one less reason to consider easing policy. We see this creating a floor for the Euro, especially as it battles headwinds from the ongoing French political crisis over budget reforms. This conflict between a weak US Dollar and specific European risks is likely to keep the EUR/USD pair trading in a tight range around the 1.1600 level.
For traders, this suggests that selling volatility on the Euro could be a prudent strategy over the next few weeks. Setting up option strangles or straddles centered around the 1.1600 mark could yield profits as long as neither the US-China trade optimism nor the French political situation causes a major breakout. The market seems balanced here, so we expect the pair to remain contained.
The primary driver in the market remains the persistent weakness of the US Dollar. With the latest US inflation data from earlier in October 2025 showing core CPI cooling to 3.1%, the Federal Reserve has a clear path to cut interest rates again next month. This is a stark reversal from the aggressive hiking cycle we saw back in 2022 and 2023, and it fuels the broader “Great Debasement” narrative.
Given this backdrop, we believe derivative traders should maintain positions that benefit from a declining dollar. This could involve buying call options on commodity-linked currencies like the Australian Dollar or using futures to short the US Dollar Index (DXY). Any temporary dollar strength on risk-off news should be viewed as an opportunity to enter new short positions.
Gold’s price, now comfortably above $4,100 an ounce, is a testament to the long-term decline in trust in fiat currencies. While short-term optimism from the US-China trade talks is creating some selling pressure, this is likely temporary. Data from the World Gold Council recently showed central banks continued to be heavy buyers in the third quarter of 2025, adding over 200 tonnes to their reserves and signaling a deep-seated demand.
The strategy for gold derivatives should therefore be two-fold. In the immediate term, the easing of geopolitical tension could cap the upside, making covered call strategies attractive for those holding physical gold. For the longer term, any significant price dip below $4,000 should be seen as a prime opportunity to buy long-dated call options to capitalize on the ongoing currency debasement trend.
We are seeing a similar dynamic in the crypto markets, where institutional adoption continues to drive prices. Solana’s rally toward $230 is being fueled by more than just retail speculation; it follows last week’s news that a major asset manager filed for a spot Solana ETP in the United States. This indicates that capital is seeking alternatives to traditional monetary systems.
For those trading crypto derivatives, the upward momentum in assets like Solana remains strong. Using call options can offer a way to participate in the upside while defining risk, a sensible approach given the asset’s inherent volatility. The positive sentiment and inflow of institutional capital suggest that buying on dips will continue to be a rewarded strategy.
